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Summary of the Announcement - 17/06/25 (Termination of COH License)

Race Oncology has terminated its global license with City of Hope, which gave it access to IP (patent application PCT/US2020/043294) for FTO-related applications of bisantrene. The company says:

• It no longer sees the license as valuable.

• Termination removes the obligation to pay milestones, royalties, and patent maintenance costs.

• Race still retains “full freedom to operate” (FTO) with bisantrene, including epigenetic/mRNA-related uses.

Why This Holds Importance

1. Race Is No Longer Relying on City of Hope's FTO Patent

City of Hope's patent was foundational to the idea that bisantrene is an FTO (Fat Mass and Obesity-associated protein) inhibitor. That 2020 research revived interest in bisantrene as a precision oncology agent with an epitranscriptomic mechanism.

Race acquiring this IP in 2023 was seen as a validation of that angle.

So terminating it just a later could seem like a retreat — unless Race has developed:

• Stronger IP of their own, or

• A better understanding of bisantrene's mechanism that goes beyond or around the COH patent.

2. They Are Likely Protecting or Shifting to a New FTO / Epigenetic IP Position

This move suggests Race has secured, or is about to secure:

• Their own composition-of-matter or method-of-use patents around bisantrene in FTO/m6A contexts.

• New discoveries (e.g., a more potent analog, delivery mechanism, or combination) that render the COH IP redundant.

• Possibly: that COH’s 2020 patent is too broad, weak, or hard to defend/enforce commercially.

3. Cost vs Value: Commercial Realism

Maintaining an external license is expensive:

• Annual patent maintenance costs

• Development milestones

• Royalties on sales

Race likely realized that owning IP outright, even if more limited in scope, is better than renting broader IP with significant ongoing obligations — especially if they believe their RC220 (bisantrene formulation) is now protectable independently.

4. Implication of Confidence in RC220 and Internal Discoveries

Dr. Tillett specifically mentions:

“...our intellectual property strategy affords strong IP protection of RC220.”

This is a clear signal that Race believes:

• They no longer need COH’s data to validate bisantrene as an FTO inhibitor.

• They’ve potentially discovered new mechanisms, molecular targets, or biological effects that are not covered by COH's patent.

• The preclinical blackout period may have led to novel, patentable science, reshaping the company's positioning entirely.

What Might Be at Play?

Race has discovered a novel mechanism beyond FTO inhibition.

This is now the most plausible scenario. The CEO’s comment that “no one has even come close to guessing what we’re working on” suggests:

• It’s not just FTO/m6A.

• Possibly a new target upstream or downstream of FTO.

• Or: epitranscriptomic effects of bisantrene that are independent of the canonical FTO pathway.

They may be preparing to file a new suite of patents.

To protect IP around:

• A new compound series (e.g., RC220 analogs)

• A new biological pathway targeted by bisantrene

• New formulation, biomarker, or method-of-treatment

They may be clearing the path for partnerships or spinouts.

Owning your IP outright makes you far more attractive for:

• Licensing deals

• M&A transactions

• Spinout entities (e.g., separating oncology from a new neurology or metabolism vertical)
  

Strategic Takeaways

• This is not a setback — it’s a signal of strength, assuming Race has legally secured freedom to operate and is working on new proprietary science.

• It likely narrows their FTO-based exposure while widening their true competitive moat.

• It’s the kind of strategic IP housekeeping a company does before unveiling a major new platform or discovery.